HF 3522
2nd Engrossment - 94th Legislature (2025 - 2026)
Posted on 05/15/2026 01:01 p.m.
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A bill for an act
relating to veterans; establishing standards for legislatively directed competitive
and direct grants; providing for honor guard detail; modifying benefits available
to veterans of the Secret War in Laos; modifying eligibility for burial in state
veterans cemeteries; establishing the Commanders Task Force; modifying pay for
state active service; allowing the commissioner of veterans affairs to temporarily
close veterans homes under certain circumstances; requiring reports; appropriating
money; amending Minnesota Statutes 2024, sections 171.07, subdivision 15;
197.231; 198.01; Minnesota Statutes 2025 Supplement, sections 192.49, subdivision
1; 197.236, subdivisions 8, 9; 197.448, subdivisions 1, 2, by adding subdivisions;
proposing coding for new law in Minnesota Statutes, chapters 196; 197; repealing
Minnesota Statutes 2025 Supplement, section 192.49, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 171.07, subdivision 15, is amended to read:
Subd. 15.
Veteran designation.
(a) At the request of an eligible applicant and on payment
of the required fee, the department must issue, renew, or reissue to the applicant a driver's
license or Minnesota identification card bearing a graphic or written designation of:
(1) Veteran; deleted text begin or
deleted text end
(2) Veteran 100% T&Pnew text begin ; or
new text end
new text begin (3) SGU Veterannew text end .
(b) At the time of the initial application for the designation provided under this
subdivision, the applicant must:
(1) be one of the following:
(i) a veteran, as defined in section 197.447; deleted text begin or
deleted text end
(ii) a retired or honorably discharged member of the National Guard or a reserve
component of the United States armed forces;new text begin or
new text end
new text begin
(iii) a veteran of the Secret War in Laos, as defined in section 197.448, subdivision 1,
paragraph (e);
new text end
(2) provide a certified copy of the applicant's discharge papers that confirms an honorable
or general discharge under honorable conditions status, deleted text begin ordeleted text end a military retiree identification
card,new text begin anew text end veteran identification card, deleted text begin ordeleted text end new text begin a new text end veteran health identification cardnew text begin , or an eligibility
certificate under section 197.448 if the applicant seeks the designation under paragraph (a),
clause (3)new text end ; and
(3) if the applicant is seeking the disability designation under paragraph (a), clause (2),
provide satisfactory evidence of a 100 percent total and permanent service-connected
disability as determined by the United States Department of Veterans Affairs.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 2.
Minnesota Statutes 2025 Supplement, section 192.49, subdivision 1, is amended
to read:
Subdivision 1.
Officersnew text begin and enlisted membersnew text end .
Every commissioned officer new text begin and enlisted
member new text end of the military forces deleted text begin shalldeleted text end new text begin mustnew text end receive from the state, while engaged in state active
service as defined in section 190.05, subdivision 5a, pay and allowances at the rate now or
hereafter paid or allowed by law to officersnew text begin or enlisted membersnew text end of the same grade and
length of service in the armed forces of the United States, but new text begin basic pay must new text end not new text begin be new text end less
than deleted text begin $130 a daydeleted text end new text begin basic pay of an E-5 pay grade according to the military basic pay tables
maintained by the federal Defense Finance and Accounting Servicenew text end .
Sec. 3.
new text begin
[196.055] REQUIREMENTS FOR LEGISLATIVELY DIRECTED
COMPETITIVE AND DIRECT GRANTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Active service member" means a person currently serving in the uniformed services
of the United States:
new text end
new text begin
(1) on active duty who is a resident of the state or stationed in the state; or
new text end
new text begin
(2) in a reserve component who is a resident of the state.
new text end
new text begin
(c) "Commissioner" means the commissioner of veterans affairs.
new text end
new text begin
(d) "Dependent child" means a child under the age of 22 who is a biological or adopted
child of a veteran.
new text end
new text begin
(e) "Immediate family member" means a spouse or dependent child of a veteran.
new text end
new text begin
(f) "Veteran" means a person who is a resident of Minnesota and who served in the
armed forces of the United States of America.
new text end
new text begin Subd. 2. new text end
new text begin Grantee eligibility. new text end
new text begin
(a) To be eligible to receive a legislatively directed
competitive or direct grant administered by the commissioner, the grantee must:
new text end
new text begin
(1) be a Minnesota-based nonprofit organization that has been operating for at least five
years;
new text end
new text begin
(2) be in good standing with the Office of the Attorney General; and
new text end
new text begin
(3) have a current federal tax form 990 on file with the federal Internal Revenue Service.
new text end
new text begin
(b) Grants made by the commissioner pursuant to sections 190.19, subdivision 2a,
paragraph (a), clauses (5) and (6); 197.608; and 197.61 are exempt from the requirements
of this section.
new text end
new text begin Subd. 3. new text end
new text begin Limitations on use of grant money. new text end
new text begin
(a) A grantee may only use grant money
subject to this section to provide services to:
new text end
new text begin
(1) Minnesota veterans;
new text end
new text begin
(2) active service members;
new text end
new text begin
(3) immediate family members of a Minnesota veteran or active service member; and
new text end
new text begin
(4) immediate family members of a deceased Minnesota veteran who died in the line of
duty.
new text end
new text begin
(b) When there are insufficient resources to serve all eligible applicants, a grantee must
prioritize serving veterans with a service-connected disability.
new text end
new text begin Subd. 4. new text end
new text begin Grant application scoring system. new text end
new text begin
The commissioner must develop a grant
application scoring system that evaluates grant applications based upon an applicant's
demonstrated history of serving veterans. The scoring system must include measurable
outcomes for veterans previously served by the applicant.
new text end
new text begin Subd. 5. new text end
new text begin Grant amounts. new text end
new text begin
The commissioner shall determine the amount of each
legislatively directed competitive grant awarded based on the results of the scoring system
developed pursuant to subdivision 4. The commissioner may not use a grantee's request for
a designated grant amount as a factor to determine the amount of the grant awarded to the
grantee.
new text end
new text begin Subd. 6. new text end
new text begin Suspension of grant money. new text end
new text begin
The commissioner may withhold amounts awarded
to a grantee if the commissioner determines that the grantee has committed fraud, is under
criminal investigation, has conducted itself in a manner that brings the state of Minnesota
or the Department of Veterans Affairs into disrepute, or is incapable of delivering the services
required under the grant agreement.
new text end
new text begin Subd. 7. new text end
new text begin Reports. new text end
new text begin
(a) Beginning in 2027, by February 15 of each year a grantee must
submit a report to the commissioner that includes the following information:
new text end
new text begin
(1) a summary of the purpose of the grant;
new text end
new text begin
(2) the grant amount provided to the grantee;
new text end
new text begin
(3) the amount of previous grants issued by the commissioner to the grantee;
new text end
new text begin
(4) the amount of other state and federal grants received by the grantee in the most recent
fiscal year;
new text end
new text begin
(5) the number of veterans, active service members, and immediate family members
served by the grantee;
new text end
new text begin
(6) the number of veterans, active service members, and immediate family members
who successfully completed the grantee's programming and the criteria used to determine
successful completion of the program; and
new text end
new text begin
(7) the grantee's charitable giving ratio.
new text end
new text begin
(b) The commissioner may require a grantee to report information in addition to the
required information under paragraph (a) if specified in the grantee's grant agreement with
the state.
new text end
new text begin
(c) Beginning in 2027, by March 1 of each year the commissioner must submit a report
on grantees that received legislatively directed competitive or direct grants from the agency
in the preceding year to the chairs and ranking minority members of the legislative
committees with jurisdiction over veterans affairs policy and finance. The report must
summarize the information and aggregate the data provided by grantees under paragraph
(a).
new text end
new text begin Subd. 8. new text end
new text begin Administrative costs. new text end
new text begin
The commissioner may retain up to five percent of the
amount appropriated for legislatively directed competitive and direct grants to fund
administrative and compliance monitoring costs related to the grants.
new text end
new text begin Subd. 9. new text end
new text begin Interaction with other law. new text end
new text begin
Notwithstanding any law to the contrary, the
requirements for grants established in this section are in addition to the applicable grants
management requirements imposed under sections 16B.97 to 16B.991.
new text end
Sec. 4.
Minnesota Statutes 2024, section 197.231, is amended to read:
197.231 HONOR GUARDS.
The commissioner of veterans affairs shall pay, within available funds and upon request
by a local unit of a congressionally chartered veterans organization or its auxiliary, up to
$50 to the local unit for each time that local unit provides an honor guard detail at the funeral
of anew text begin :
new text end
new text begin (1)new text end deceased veterannew text begin ;
new text end
new text begin
(2) veteran of the Secret War in Laos, as defined in section 197.448, subdivision 1; or
new text end
new text begin (3) member of a reserve component of the armed forces, and any member of the Army
National Guard or the Air National Guard, as defined in section 197.236, subdivision 8,
paragraph (b), clause (3)new text end .
If the local unit provides a student to play "Taps," the local unit may pay some or all of the
$50 to the student.
Sec. 5.
Minnesota Statutes 2025 Supplement, section 197.236, subdivision 8, is amended
to read:
Subd. 8.
Eligibility.
new text begin
(a) For purposes of this subdivision, the following terms have the
meanings given:
new text end
new text begin
(1) "minor child" means an unmarried child under 21 years of age or under 23 years of
age and pursuing a full-time course of instruction at an approved educational institution;
new text end
new text begin
(2) "unmarried adult child" means an unmarried child who became permanently physically
or mentally disabled and incapable of self support before 21 years of age or before 23 years
of age and pursuing a full-time course of instruction at an approved educational institution;
and
new text end
new text begin
(3) "willful misconduct" means an act involving conscious wrongdoing or known
prohibited action as described in United States Code, title 38, section 3.1, paragraph (n).
new text end
new text begin (b) new text end Cemeteries must be operated solely for the burial of new text begin the following persons:
new text end
new text begin (1) new text end service members who die on active duty, eligible veterans, and deleted text begin their spouses and
dependent children,deleted text end new text begin other personsnew text end as deleted text begin defineddeleted text end new text begin listednew text end in United States Code, title 38, section
2402, paragraph (a), subparagraphs 1 to deleted text begin 5deleted text end new text begin 4new text end and 7deleted text begin .deleted text end new text begin ;
new text end
new text begin
(2) veterans of the Secret War in Laos;
new text end
new text begin
(3) beginning January 1, 2027, members of a reserve component of the armed forces,
and any member of the Army National Guard or the Air National Guard when:
new text end
new text begin
(i) the member completed at least one full term of service and received an honorable
discharge; or
new text end
new text begin
(ii) the member's death occurs while in good standing with their assigned component
and was not due to their willful misconduct;
new text end
new text begin
(4) spouses, surviving spouses, minor children, or unmarried adult children of a person
listed in United States Code, title 38, section 2402, paragraph (a), subparagraphs 1 to 4 and
7; and
new text end
new text begin
(5) beginning January 1, 2027, spouses, surviving spouses, minor children, or unmarried
adult children of a person listed in clause (3).
new text end
new text begin
For purposes of this section, a surviving spouse includes a surviving spouse who had a
subsequent marriage.
new text end
new text begin
(c) An honorable discharge under this section does not include a general discharge under
honorable conditions.
new text end
new text begin
(d) Applicants with convictions under United States Code, title 18, section 704, are
ineligible for burial in state veterans cemeteries. By January 1, 2027, the commissioner
must establish a process to verify that applicants for burial have not been convicted of stolen
valor.
new text end
Sec. 6.
Minnesota Statutes 2025 Supplement, section 197.236, subdivision 9, is amended
to read:
Subd. 9.
Burial fees.
(a) The commissioner of veterans affairs shall establish a fee
schedule, which may be adjusted from time to time, for the interment of deleted text begin eligible spouses
and dependent childrendeleted text end new text begin qualified persons under subdivision 8, paragraph (b), clauses (2) to
(5)new text end . The fees shall cover as nearly as practicable the actual costs of intermentdeleted text begin , excluding
the value of the plotdeleted text end .
(b) Upon application, the commissioner may waive or reduce the burial fee for an indigent
eligible person. The commissioner shall maintain a policy, eligibility standards, and
application form for requests to waive or reduce the burial fee to indigent eligible applicants.
(c) No plot or interment fees may be charged for the burial of service members who die
on active duty or eligible veterans, as defined in United States Code, title 38, section 2402,
paragraph (a), subparagraphs 1 to 4 and 7.
Sec. 7.
Minnesota Statutes 2025 Supplement, section 197.448, subdivision 1, is amended
to read:
Subdivision 1.
Definition.
deleted text begin As used indeleted text end new text begin (a) For purposes ofnew text end this section, the deleted text begin termdeleted text end new text begin following
terms have the meanings given.
new text end
new text begin
(b) "Commissioner" has the meaning given in section 197.61, subdivision 2, paragraph
(c).
new text end
new text begin
(c) "Department" has the meaning given in section 197.61, subdivision 2, paragraph (e).
new text end
new text begin
(d) "VA" has the meaning given in section 197.61, subdivision 2, paragraph (g).
new text end
new text begin (e)new text end "Veteran of the Secret War in Laos" new text begin or "SGU veteran" new text end means a person who resides
in Minnesota and who:
(1) was naturalized as provided in section 2(1) of the federal Hmong Veterans'
Naturalization Act of 2000, Public Law 106-207; or
(2) is a person who the commissioner of veterans affairs determines served honorably
with a special guerrilla unit or with irregular forces that operated from a base in Laos in
support of the armed forces of the United States at any time during the period beginning
February 28, 1961, and ending May 14, 1975, and is a citizen of the United States or an
alien lawfully admitted for permanent residence in the United States.
Sec. 8.
Minnesota Statutes 2025 Supplement, section 197.448, subdivision 2, is amended
to read:
Subd. 2.
Eligibility for benefits and privileges.
(a) A veteran of the Secret War in Laos,
as defined in subdivision 1,new text begin paragraph (e),new text end clause (1), is entitled to the benefits and privileges
listed in paragraph (d) on July 2, 2025.
(b) A veteran of the Secret War in Laos, as defined in subdivision 1,new text begin paragraph (e),new text end
clause (2), is entitled to the benefits and privileges listed in paragraph (d) after the
commissioner of veterans affairs verifies the person's veteran status. deleted text begin The commissioner
must not begin accepting applications for verification under this paragraph until the legislature
enacts criteria and a protocol to determine:
deleted text end
deleted text begin
(1) which Minnesotans served in special guerilla units or with irregular forces in Laos;
and
deleted text end
deleted text begin
(2) which of the Minnesotans who served in special guerilla units or with irregular forces
in Laos are deserving of Minnesota veterans benefits.
deleted text end
(c) If the commissioner verifies a person's status as a veteran of the Secret War in Laos,
the commissioner must provide the person with a certificate of eligibility for the benefits
and privileges listed in paragraph (d) on a form developed by the commissioner for this
purpose. The commissioner must develop the form required under this paragraph no later
than September 15, 2025.
(d) The following statutory benefits and privileges available to a veteran, as defined in
section 197.447, are also available to a veteran of the Secret War in Laos: deleted text begin section 171.07,
subdivision 15 (veteran designation on drivers' licenses and state identification cards);deleted text end new text begin
section 43A.09 (civil service recruitment); section 43A.11 (veterans preference in state
employment); section 43A.111 (certain disabled veterans);new text end section 197.23 (purchase of
grave markers); section 197.231 (honor guards); section 197.236 (state veterans cemeteries);
section 197.455 (veterans preference); section 197.4551 (permissive preference for veterans
in private employment); new text begin section 197.46 (writ of mandamus); section 197.48 (application);
section 197.481 (enforcement by commissioner); and new text end section 197.63 (vital records, certified
copies)deleted text begin ; section 197.65 (renewal of professional licenses, motor vehicle registration, and
drivers' licenses); and section 197.987 (honor and remember flag)deleted text end .
Sec. 9.
Minnesota Statutes 2025 Supplement, section 197.448, is amended by adding a
subdivision to read:
new text begin Subd. 3. new text end
new text begin Eligibility determination. new text end
new text begin
(a) The commissioner must establish an application
process to determine a veteran's eligibility for the benefits in subdivision 2, paragraph (d).
new text end
new text begin
(b) To establish eligibility, an applicant must submit a completed application for preneed
determination of eligibility for burial in a VA national cemetery. County veteran service
officers and the commissioner must provide assistance to applicants filling out the application.
The commissioner must make copies of the application and any successor form available
on the department's website and at the department's offices.
new text end
new text begin
(c) After the VA makes a determination on the application, the applicant must submit
the determination to the commissioner. If the VA determines that an applicant is eligible to
receive benefits under subdivision 2, paragraph (d), the commissioner must issue a certificate
of eligibility to the applicant for the benefits and privileges under subdivision 2, paragraph
(d).
new text end
Sec. 10.
Minnesota Statutes 2025 Supplement, section 197.448, is amended by adding a
subdivision to read:
new text begin Subd. 4. new text end
new text begin Special consideration. new text end
new text begin
(a) If the VA determines that an applicant is not eligible,
the applicant may request special consideration from the commissioner. The commissioner
must establish a process to request special consideration consistent with the requirements
of this subdivision. The commissioner must make applicable forms to request special
consideration available on the department's website and at certain department offices.
new text end
new text begin
(b) An applicant seeking special consideration under this subdivision must submit the
following to the commissioner:
new text end
new text begin
(1) documentation from the VA regarding the determination of ineligibility; and
new text end
new text begin
(2) at least two different forms of documentation supporting the applicant's claim of
veteran status, which may include:
new text end
new text begin
(i) original service-related documents;
new text end
new text begin
(ii) an affidavit from a commissioned officer, noncommissioned officer, or other member
of the applicant's chain of command who has direct knowledge of the applicant's service;
new text end
new text begin
(iii) two affidavits from individuals who served with the applicant in a special guerrilla
unit or irregular force and who have personal knowledge of the applicant's service; or
new text end
new text begin
(iv) other appropriate and relevant proof of the applicant's service as determined by the
commissioner, including but not limited to:
new text end
new text begin
(A) photographs taken during the applicant's service in Laos;
new text end
new text begin
(B) newspaper articles featuring or citing the applicant's service in a special guerrilla
unit or irregular force;
new text end
new text begin
(C) certificates of membership from a veteran's organization such as the Lao-Hmong
American Coalition; Lao Veterans of America; SGU Veterans and Families of USA, Inc.;
and Royal Lao Armed Forces and SGU;
new text end
new text begin
(D) congressional recognition certificates;
new text end
new text begin
(E) certificates of training;
new text end
new text begin
(F) letters of commendation; or
new text end
new text begin
(G) an affidavit from a case officer or former case officer in the United States intelligence
services.
new text end
new text begin
(c) The commissioner must review an application for special consideration submitted
under this subdivision. The commissioner may request additional information from an
applicant to validate the contents of an application for special consideration. If the
commissioner determines that an applicant is eligible to receive benefits under subdivision
2, paragraph (d), the commissioner must issue a certificate of eligibility to the applicant for
the benefits and privileges under subdivision 2, paragraph (d).
new text end
new text begin
(d) If an application for special consideration is denied by the commissioner, an applicant
may request a contested case hearing to challenge the commissioner's denial by filing a
request with the commissioner within 60 days of the date of the denial notice. The request
must state specific reasons for contesting the denial. A contested case hearing on a timely
and properly filed request must be conducted according to the procedures in sections 14.57
to 14.62.
new text end
new text begin
(e) The deadline to submit an application for eligibility under this subdivision is December
31, 2030.
new text end
Sec. 11.
new text begin
[197.581] COMMANDERS TASK FORCE.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
The Commanders Task Force is established to advise
the legislature, the governor, and the commissioner on matters pertaining to veterans and
veterans' families.
new text end
new text begin Subd. 2. new text end
new text begin Membership. new text end
new text begin
The task force must consist of the elected leaders from the
following congressionally chartered veteran service organizations in Minnesota:
new text end
new text begin
(1) The American Legion;
new text end
new text begin
(2) American Veterans;
new text end
new text begin
(3) Disabled American Veterans;
new text end
new text begin
(4) Jewish War Veterans;
new text end
new text begin
(5) Marine Corps League;
new text end
new text begin
(6) Military Order of the Purple Heart;
new text end
new text begin
(7) Paralyzed Veterans of America; and
new text end
new text begin
(8) Veterans of Foreign Wars.
new text end
new text begin Subd. 3. new text end
new text begin Organization. new text end
new text begin
(a) The task force shall adopt standing rules and an order of
business for conducting regular meetings.
new text end
new text begin
(b) The task force shall annually elect a chair and a vice-chair from among current task
force members.
new text end
new text begin Subd. 4. new text end
new text begin Duties. new text end
new text begin
The task force shall:
new text end
new text begin
(1) advise the commissioner, the legislature, and the governor on matters relating to
veterans, the families of veterans, and the Minnesota Department of Veterans Affairs; and
new text end
new text begin
(2) serve as a liaison between state government and the organizations that make up the
task force membership.
new text end
new text begin Subd. 5. new text end
new text begin Compensation. new text end
new text begin
Notwithstanding section 15.059, subdivision 6, members are
not entitled to compensation, per diem, reimbursement for child care expenses, or other
expense reimbursement from state funds.
new text end
new text begin Subd. 6. new text end
new text begin Expiration. new text end
new text begin
Notwithstanding section 15.059, subdivision 6, the task force shall
not expire.
new text end
Sec. 12.
Minnesota Statutes 2024, section 198.01, is amended to read:
198.01 VETERANS HOME; ELIGIBILITY OF VETERANS.
new text begin (a) new text end The Minnesota veterans homes shall provide nursing care and related health and
social services for veterans and their spouses who meet eligibility and admission requirements
of the Minnesota veterans homes. The commissioner may not new text begin permanentlynew text end close a veterans
home unless closure of the home is specifically authorized or required by a law enacted new text begin by
the legislaturenew text end after July 1, 2015. The word "veteran" as used in this section has the meaning
provided in section 197.447.
new text begin
(b) The commissioner may temporarily close a veterans home in compliance with Centers
for Medicare and Medicaid Services requirements upon receiving an involuntary termination
notice. The commissioner must not temporarily close a veterans home until the veterans
home has transferred, relocated, or discharged every resident according to section 144A.161,
subdivision 6, in a safe and orderly manner to the most appropriate setting for the resident.
Before temporarily closing a veterans home, the commissioner must provide notice of a
closure under this paragraph to the governor and the chairs and ranking minority members
of the legislative committees with jurisdiction over veterans affairs.
new text end
Sec. 13. new text begin APPROPRIATIONS.
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(a) $59,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of veterans affairs for the purposes of this act.
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(b) $141,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of public safety for the purposes of this act. This is a onetime appropriation.
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Sec. 14. new text begin REPEALER.
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Minnesota Statutes 2025 Supplement, section 192.49, subdivision 2,
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is repealed.
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APPENDIX
Repealed Minnesota Statutes: H3522-2
192.49 PAY AND ALLOWANCES OF OFFICERS AND ORGANIZATIONS.
Subd. 2.
Enlisted persons.
When called into state active service by the governor, other than for encampment or maneuvers, including the time necessarily consumed in travel, each enlisted person of the military forces shall be paid by the state the pay and the allowances, when not furnished in kind, provided by law for enlisted persons of similar grade, rating, and length of service in the armed forces of the United States, or $130 a day, whichever is more.